Tag: IT industry

Laptop import curbs to be put off for 1 year — a relief for India’s IT industry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a significant development, the Indian government has announced a delay in implementing laptop import restrictions, providing much-needed relief to the country’s IT industry. The new timeline, unveiled by the authorities, indicates that the import restrictions are likely to be introduced in late 2024, with a gradual ramp-up process scheduled to conclude by November 25 of the same year. This delay comes as welcome news to both domestic and international players in the tech sector.

Initially slated for implementation on October 31, the government’s decision to defer the introduction of import restrictions stems from a multifaceted approach to fostering domestic manufacturing capacities and attracting investment through the Production-Linked Incentive (PLI) scheme. By extending the timeline for enforcement, the government aims to provide PLI applicants with a more extended window to establish manufacturing units in India.

The proposed import restrictions will apply to laptops, personal computers, and tablets. To ensure transparency and accountability, the government has stated that it will consider allowing imports only after thorough registration and disclosure of import details. This move aligns with the broader goal of bolstering India’s manufacturing ecosystem and reducing dependence on imports.

While this delay has sparked concerns among global tech giants, one domestic phone maker, Lava, has welcomed the government’s decision. Sunil Raina, President and Business Head of Lava, expressed optimism about the long-term benefits of these import restrictions.

Raina stated, “Changes are required nevertheless. I think, from my perspective, we missed the previous bus on growing the manufacturing ecosystem in India. And that bus was actually taken by China. It could have been ours at that time. There would be some of these inconvenient decisions that will have to be taken and they’re only good for the future. Practically speaking, there’s never a good time to do something like this. But whenever you do it, it will lead to better results. I’m pretty sure, and I think it is a positive development and it should be encouraged and appreciated.”

For more details, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IBLA 2023 | Former Wipro chairman Azim Premji wins Hall of Fame award

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Former chairman of Wipro Limited and one of India’s leading business tycoons, Azim Premji, needs no introduction. Born on July 24, 1945, Premji is also known as the Czar of the Indian IT industry.

Premji was born in Bombay (now Mumbai) to a well-known businessman Mohamed Premji. Mohamed Premji was also known as the Rice king of Burma.

Premji inherited Wipro from his father at the age of 21 in 1966 after his father’s sudden demise. He was about to complete his engineering degree from Stanford university at that time but decided to postpone it. Premji finally completed his education in 1999 through a distance learning programme.

Wipro is among India’s largest software services providers.

Premji is also a well-known philanthropist in India as he has contributed a significant amount of his earnings to social causes.

In FY20 and FY21, Premji emerged as the most generous Indian and topped the philanthropy charts by donating Rs 22 crore a day or Rs 7,904 crore and in FY21, Premji donated Rs 9,713 crore or Rs 27 crore a day.

However, in FY22, Premji slipped to the second position with an annual donation of Rs 484 crore, according to the India Philanthropy Report 2023 by Dasra and Bain & Co.

Also Read:Azim Premji remains India’s top philanthropist despite a deceptive low in FY22

Ever since Azim Premji took control of Wipro, he diversified the company from producing vegetable oil to providing IT services, software solutions, and consulting services.

Premji is known for his generous donations. He has so far given away $21 billion to his charitable foundation. In 2020, when the country witnessed the first wave of the pandemic, Azim Premji Foundation pledged $150 million to the victims of the Covid-19 pandemic.

In 2019, Azim Premji handed over the reins of his company to his son, Rishad Premji. He is now the executive chairman of the company.

As of May 2023, Forbes estimated his net worth as $ 9.1 billion making him 223rd richest person in the world.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Geopolitics to become integral part of IT industry: Top Ericsson India official

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Geopolitics will define business decisions in the IT industry going ahead, and companies will have to turn their focus on real-time data to stay ahead of the competition, said Amitabh Ray, the managing director of Ericsson Global Services India.

Ray said geopolitics can no more be overlooked by IT companies in the aftermath of the Russia-Ukraine crisis and the COVID-19 pandemic.

“In the IT industry, we were very happy to keep ourselves away from politics, but now it will become an integral part of information technology because decisions about places where we can do business and with whom will be driven by geopolitics. We have to adjust to this,” he told PTI on the sidelines of a session at INFOCOM 2022, an IT event organised by the ABP Group.

The senior company official said business leadership needs to be redefined in today’s times, and a key aspect of that is to take into account factors like “nowcasting”.

Also Read: Latest Ericsson report suggests 5G to constitute over 50% of mobile subscriptions in India by 2028

“Business decisions will have to be taken on the basis of ‘nowcasting’, which is all about the present. In this direction, IT companies have started scanning data from a host of active sources like social media, airline traffic and bank transactions,” Ray said.

“What we have known as globalisation for the last 50-odd years was driven by three factors — cheap capital, labour and energy — but all three are gone today. You have to accept this fact to move ahead,” he said.

Ray also said climate change is another crucial aspect that IT companies need to consider, and many firms are taking this into account.

“You cannot set up a big data centre in a country where natural calamities have been rampant. Climate change is going to be here and interrupt our future plans, and therefore, needs consideration,” said Ray.

Also Read: India’s foreign minister maps out the country’s tech policy in one line

The key is to balance organisational priorities with societal and climate demands, and operate globally with a local mindset, he added.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Infosys allows employees to take up external gigs with prior consent of manager

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Infosys has allowed its employees to take up external gig work, becoming the first large software services firm in India to do so.

The company’s move to acknowledge and enable gig work marks a step forward and may even become a trendsetter, and comes as a larger debate around moonlighting and employee rights continues to rage in the IT industry and in other white-collar work sectors.

“Any employee, who wishes to take up gig work, may do so, with the prior consent of their manager and BP-HR, and in their personal time, for establishments that do not compete with Infosys or Infosys’ clients,” according to an email sent to employees, a copy of which was accessed by Moneycontrol.

Also read: Infosys and TCS might have understood the solution to moonlighting

As it happens, the email nowhere mentions the term ‘moonlighting’, as the term technically implies dual employment, which continues to be prohibited. The email instead lays down guidelines that will help employees take up side projects that are not in direct conflict with their employment contract.

Infosys as an organisation values learnability, and that they are supportive of employees taking up additional projects, it added.

It reiterated that care needs to be taken to ensure that the projects employees want to take up “comply with the company’s policy for gig working, and do not breach client contracts or otherwise impact the employee’s ability to be effective in their full-time job with Infosys.”

Much of these requirements can be addressed when employees have a discussion with their managers before taking up these projects, it said.

Also read: Moonlighting FAQs answered: Is it illegal? How many jobs can employees do at a time?

In addition, the company said it has also created opportunities for gig working internally —  through its Accelerate platform that enables managers to list gig work jobs that employees can take up. On average, Chief Executive Officer Salil Parekh said about 4,000 people apply each quarter and 600 are selected.

In August, Swiggy brought in a moonlighting policy for its employees, either for free or for economic consideration after an internal approval process.

In July, Kotak Institutional Equities conducted a survey of 400 IT/ITeS employees where it found that 65 percent of those who responded had either participated in part-time work during a period in which most companies were engaged in work-from-home or were aware of a co-worker who had.

Last week, while announcing the results, Parekh said that the company was working on a policy to allow employees to take on gigs outside of the company. “We are also developing more comprehensive policies for that while ensuring contractual and confidentiality committed are fully respected,” Parekh had said at the time.

He also informed that the company has let go of employees in the past due to moonlighting. “If the employees are doing blatant work in two specific companies where there are confidentiality issues, we have let go,” he said.

Tata Consultancy Services had said that moonlighting was against its values and culture.

Wipro Chief Executive Officer Thierry Delaporte said it was a conflict of interest that was the primary issue. “We’re perfectly fine with someone having a little side job here and there. It’s different if you’re working for a company that is in our environment,” he said.

Also read: ‘Not ethical’ to ‘not a new thing’: India’s top tech firms speak on moonlighting

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is Infosys’ non-compete clause enforceable? Legal expert explains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Infosys’ non-compete clause — barring ex-employees from working for the same customer in rival firms such as TCS, Accenture, IBM, Cognizant, and Wipro for at least six months after quitting — may not be enforceable, say legal experts.

According to the clause, employees are not allowed to work on the same projects in competition firms, for at least six months after leaving Infosys, on which they worked within the company for the last 12 months. It also prohibits them from being in the employment of the clients if they had worked with them in the 12 months before they quit Infosys.

The Labour Ministry has issued a notice to Infosys to hold a joint discussion on April 28 regarding the enforcement of the agreement.

The matter came to light after an IT employee union, Nascent Information Technology Employees Senate (NITES), filed a complaint with the Ministry against the tech major, seeking removal of the clause.

Akshay Sachthey, Associate Partner, Phoenix Legal, explained to CNBCTV18.com that it is a fairly well-settled position in India that non-compete clauses are enforceable only during the term of employment and not thereafter.

“The position comes from Section 27 of the Indian Contract Act 1872 which declares as void any agreement that restrains a person from exercising a lawful trade or business. While there are exceptions to this rule for restraints that are ‘reasonable’, courts have consistently refused to enforce non-compete clauses beyond the term of employment,” he said.

Sachthey said that employers often include these clauses despite them being aware of their unenforceability so that they act as a deterrent for employees.

Also Read: Infosys guidance prompted by strong demand environment, falling attrition

While an employer cannot enforce a non-compete post-employment, courts have recognised the need to protect employers’ proprietary information or trade secrets. Therefore, if there is an unauthorised disclosure of such information by the employee, then one would expect courts to grant relief to employers, he explained.

According to Sachthey, public information suggests that the clause imposed by Infosys has two restrictions. The first is an absolute restriction on employment with existing customers while the second seems to be a partial restriction on employment with competitors where it would involve working with existing customers. It would be difficult to enforce either of these since courts have held even partial restraints to be invalid once the employment term ends, he told CNBC-TV18.

Infosys’ clarification

While many argue such a clause may restrict career growth, Infosys has called it a standard business practice in many parts of the world for employment contracts to include controls of reasonable scope and duration to protect the confidentiality of information, customers connection and other legitimate business interests.

It also clarified that these terms are fully disclosed to all job aspirants before they decide to join Infosys, and do not have the effect of preventing employees from joining other organisations for career growth and aspirations.

What Infosys employees and ex-employees make of it

While there may be a hue and cry outside the organisation, the clause does not come as a surprise to people within Infosys or for those who have worked with the IT major in the past. CNBC-TV18 spoke to two such people who said many companies have such clauses as they must protect their own unique traits, which lie with their workforce.

An Infosys ex-employee, who requested not to be named, said, “Talent itself is a gateway to delivering work more uniquely or more efficiently than others now.”

From that perspective and secondly, due to the data and information that employees are trusted with when they’re working, especially, in consulting or service firms like Infosys, TCS, etc., it’s okay for firms to have such contracts, he said.

It’s not unfair from a business perspective but from an individual’s point of view, “in a closed circuit like the IT industry, to propel career growth people would go from an MNC to an MNC or a firm that can match their current profile and salary package”, he said. When switching firms, it is the best opportunity for an employee to progress being connected to the same client as it helps them create a network and become a useful resource, he added.

“However, such a clause limits growth opportunities for employees and interns which in turn hampers the talent ecosystem. The talents would slowly lose their trust in their employers,” the ex-employee of Infosys explained.

Also Read | Infosys Q4 Results: From Union Bank’s WhatsApp-based service to E.ON’s digital workplace tranformation, here’s what Infy did this quarter

Meanwhile, inside Infosys, there is not much chatter about the whole issue because it’s not new. The company has had similar clauses for a long time, an employee, who requested anonymity, told CNBC-TV18. “Do not understand the sudden hype around it,” he said.

Siva Prasad Nanduri, VP and Business Head- IT Staffing, TeamLease Digital, said at a time when the attrition rate is so high in the IT industry, Infosys will not be able to implement this policy or enforce it for employees because it will not hold in the spirit of employment.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metaverse to drive revenue growth for companies in 3 to 5 years, says TCS President

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IT industry revenue to cross $200 billion in FY2022: NASSCOM

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian IT industry is expected to clock revenue of $227 billion in FY2022 against $196 billion last year, the NASSCOM Strategic Review report revealed. The industry, which has a total workforce of around 5 million, is likely to register a 15.5 percent growth, the highest since 2011, the industry body said.

NASSCOM’s president Debjani Ghosh said that it was a watershed year for the tech industry, which grew on the back of its persistent focus on customer-centricity. According to Ghosh, this was a year of resurgence which came after the one of resilience following the Covid-19 pandemic.

“The industry has added $100 billion in ten years; the first $100 billion took 30 years,” Ghosh said.

A total of 4.5 lakh new hires were added in FY22 so far, the highest ever in a single year, which takes the overall direct employees to 50 lakh people. Of the total, 44 percent of the new hires were women and their overall share is now 18 lakh in the industry.

Export revenues grew at the pace of 17.2 percent to $178 billion this year from $151 billion, while domestic revenues clocked a 10 percent growth to $49 billion, led by growth in hardware and products.

The industry announced nearly 300 acquisitions during the year. Of the total services exports out of India, IT services exports account for 51 percent at present. Share of new-age digital services stood at $13 billion, the report added.

At present, there are 1,430 global capability centres in the country, which is 1.4 times higher than FY15.

On the talent front, FY22 saw a 10 percent estimated growth in direct employee pool. According to Ghosh, there is a 21.1 percent demand-supply gap in India, which is among the lowest key global markets.

Though NASSCOM does not provide a growth projection for the future, the industry body said a chief executives’ survey pointed at another growth year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IT industry supply side pressures moderating? Jobspeak IT index at 7 month low

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Naukri Jobspeak IT index has seen a sequential decline for the 2^nd month in a row in November. This can be read as an indication that the supply side pressures for the IT industry are moderating. Subsequently, this might also mean that the attrition levels should decline going forward.

The index is down 26.4 percent from its peak in September earlier this year and is now at its seven month low. The index shows that the November reading is down 11.3 percent and was down 17 percent in October.

As economic activity returns to normal after nearly two years of duress courtesy of the COVID-19 pandemic, the job market in India has overall posted annual growth of 26 percent in the month of November.

The continuous growth of the IT software and BFSI sectors have enabled metro cities to outperform their tier 2 counterparts in the annual growth charts, the report further said.

IT companies like Tech Mahindra had told CNBC-TV18 after the third-quarter results that they expect attrition levels to start coming down now.

The IT services sector in India will see an addition of nearly 4.5 lakh jobs in the second half of this financial year, said a recent report.

The IT index in the past month has fallen 3.5 percent but is still up 11.2 percent in the past six.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow